|By Marketwired .||
|November 29, 2012 04:00 PM EST||
CALGARY, ALBERTA -- (Marketwire) -- 11/29/12 -- Aveda Transportation and Energy Services Inc. ("Aveda" or the "Company") (TSX VENTURE:AVE), a leading provider of oilfield hauling services and equipment rentals to the energy industry, today announced record revenue for the three and nine months ended September 30, 2012.
2012 BUSINESS HIGHLIGHTS
-- Revenue for the nine months ended September 30, 2012 grew by $7.7 million to $60.3 million compared with revenue of $52.6 million for the same period in 2011; -- Generated net loss for the nine months ended September 30, 2012 of $0.8 million, as compared to net income of $2.3 million for the same period in 2011; -- Generated Adjusted EBITDA(1) for the nine months ended September 30, 2012 of $7.2 million, a decrease of $1.5 million compared with Adjusted EBITDA(1) of $8.7 million for the same period in 2011; -- Expanded equipment base by acquiring $22.5 million of net additional equipment and leaseholds during the first nine months of 2012; -- Commenced operations in new branches in Pleasanton, TX and Midland, TX. The Company signed a new lease on a new Pennsylvania facility that will see its operations move from New Columbia to Williamsport, PA in early 2013; -- Raised $8.0 million ($7.2 million net of financing costs) in new equity financing, and increased its existing credit facility to $50 million from $35 million; -- Acquired selected assets of 1st Rate Energy Services Inc. and a private company called Complete Energy Services Inc. together referred to as "Complete" for approximately $7.5 million. As a result of the acquisition the Company increased its rental fleet by 270 pieces of equipment and established operation in Sylvan Lake, AB ; -- The Company elected to close its Crossfield, AB rental operation and combine it with the newly acquired Sylvan Lake, AB operation; -- Following consecutive periods of poor performance, the Company elected to close its Melita, MB and Grande Prairie, AB branches and allocated its fleet assets amongst other branches; and -- Relocated Nisku, AB branch to Leduc, AB and added rig moving to the operation along with service work.
(1) See MD&A Section 8: Non-IFRS Measure
"Despite current market pressures, we have demonstrated that our customers value our services highly which allowed us to continue to grow our operations" said David Werklund, Executive Chairman of Aveda "We continue to build on our strength and lay the foundation for future growth, to become a highly profitable transportation and rentals company to serve the energy industry."
(in thousands, except per share and ratio amounts) ---------------------- Nine Nine Three Three Months Months Months Months ended Ended Ended Ended September September % Change September September % Change 30, 2012 30, 2011 2011 - 2012 30, 2012 30, 2011 2010 - 2011 ---------------------------------------------------------------- Revenue 60,316 52,607 14.7% 19,936 18,106 10.1% Gross profit(5) 10,596 12,857 -17.6% 3,492 4,557 -23.4% Gross margin 17.6% 24.4% -28.1% 17.5% 25.2% -30.4% Adjusted EBITDA(1) 7,208 8,677 -16.9% 2,863 2,890 -0.9% Adjusted EBITDA(1) as a percentage of revenue 12.0% 16.5% -27.5% 14.4% 16.0% -10.0% Net income (loss) (761) 2,263 -133.6% (431) 1,676 -125.7% Net income (loss) as a percentage of revenue -1.3% 4.3% -129.3% -2.2% 9.3% -123.4% Adjusted EBITDA per share(1,2) 0.86 1.52 -43.4% 0.29 0.50 -42.0% Earnings per share - basic and diluted(2) (0.09) 0.40 -122.5% (0.04) 0.29 -113.8% Current ratio 2.94 0.65 352.1% 2.94 0.65 352.1% Debt to equity ratio(3) 1.53 1.43 6.3% 1.53 1.43 6.3% Debt to EBITDA ratio(3, 4) 3.76 1.74 116.3% 3.76 1.74 116.3% Net capital assets Not Not addition 22,448 12 Meaningful 11,908 (1) Meaningful Notes: (1) This News Release contains the term Adjusted EBITDA. Adjusted EBITDA as presented does not have any standardized meaning prescribed by international financial reporting standards (IFRS) and therefore it may not be comparable with the calculation of similar measures for other entities. Management uses Adjusted EBITDA to analyze the operating performance of the business. Adjusted EBITDA as presented is not intended to represent cash provided by operating activities, net earnings or other measures of financial performance calculated in accordance with IFRS. It is defined as earnings before interest, taxes, depreciation and amortization excluding foreign exchange gains or losses which are primarily related to the US dollar activities of the Company and can vary significantly depending on exchange rate fluctuations, which are beyond the control of the Company, and write downs of intangible assets, goodwill impairment, financing costs, gains or losses on disposal of assets, stock based compensation, fees and expenses on settlement of debt and losses on extinguishment of debt. (2) 2011 Per share amounts calculated to take into consideration the Company's 30:1 share consolidation which took place on November 28, 2011 as if the share consolidation had been in effect throughout 2011. (3) Debt includes, revolving credit facility, loans and borrowings, obligations under finance lease and convertible debenture as per their carrying amounts on the balance sheet. (4) Nine and three months ended September 30 debt to EBITDA ratio calculated using Adjusted EBITDA for the trailing 12 months. (5) Gross profit calculated as revenue less direct operating expense.
The Company earns revenue primarily by providing specialized transportation services to companies engaged in drilling for exploration, development and production of petroleum resources. Demand for the Company's transportation services is therefore linked to the economic conditions of the energy industry and the general level of activity in the exploration, development and production of petroleum resources in Western Canada and in the US. Drilling activity in the WCSB and in the US has in recent history been affected by amongst other things, low natural gas prices and higher than normal natural gas inventories in storage caused by many factors including reduced demand for commodities as a consequence of a global recession and the temporary oversupply of natural gas caused by the fast development of shale gas resources in the US.
Countering these factors is a strong price for oil, which has allowed oil-focused regions to experience increasing rig counts. Two of Aveda's newest branches are benefitting from such increases in Texas, while other US branches have been successful in maintaining revenues and margins despite reduced rig-counts in gas-focused regions such as the Dallas-Ft. Worth basin and the Utica and Marcellus Shale.
In the WCSB, although up to July 2012 rig counts were higher than 2011, levels of activity failed to ramp up(1) to the expected levels in Q3 due mainly to rainy weather conditions. A return to higher activity levels is expected in Q4 as oil and gas companies increase drilling operations with the arrival of the cold weather and the use of their remaining drilling budgets, although it is uncertain if rig counts will return to 2011 levels for the remaining of the year.
Opportunities for expansion and growth continue to appear strongest in the US. According to the Baker Hughes Rig Count(2), drilling activity in the Eagleford and Permian basins has increased on average 30.8% year over year. This has allowed Aveda to grow significantly in these areas, with the opening of two new branches (Pleasanton and Midland) in 2012. The Mineral Wells branch is expected to maintain revenues by acquiring new customers in higher activity areas, to compensate for reduced activity in the Dallas/Ft. Worth gas basin where it operates. Similarly, Pennsylvania has experienced a decline of 30% in active rigs due to the predominance of gas plays in the region, but Aveda's local branch has been able to maintain equipment utilization due to excellent customer relationships and recognized superior operational efficiencies compared to competitors. It is expected that rig counts will continue the downward trend in Pennsylvania gas plays, however management believes the decline may be partially offset by the relocation of rigs to oil plays further west in the state.
The North American economy faces several macro-economic uncertainties, such as, the US fiscal cliff related to the Budget Control Act, the on-going European debt crisis, and the impact of the economic slowdown in China. It is not clear at this time what impact, if any, these uncertainties will have on the North American oil and gas industry and conversely on the operations of the Company. The Company is monitoring these macro-economic issues through feedback from its customers and will adjust its operations as necessary.
(1) June Warren Nickels Rig Locator, accessed on October 15, 2012, at www.riglocator.ca
(2) Baker Hughes Rig Count, accessed on October 15, 2012, http://investor.shareholder.com/bhi/rig_counts/rc_index.cfm
About Aveda Transportation and Energy Services
Aveda provides specialized transportation of products, materials, supplies and equipment required for the exploration, development and production of petroleum resources in the Western Canadian Sedimentary Basin and in the United States of America principally in and around the states of Texas and Pennsylvania. Transportation services include both the equipment necessary to move the load as well as a trained, professional driver capable of securing, moving and manipulating the load at its origin and destination. Aveda's rental operations include the rental of tanks, mats, pickers, light towers and other equipment necessary for oilfield operations.
Aveda was incorporated in 1994 as a private company to serve the oil and gas industry. In the spring of 2006 the Company went public on the TSX Venture Exchange. Aveda has major operations in Calgary, AB, Slave Lake, AB, Leduc, AB, Sylvan Lake, AB Mineral Wells, TX, Pleasanton, TX, Midland, TX and New Columbia, PA. Aveda is publicly traded on the TSX Venture Exchange under the symbol AVE. For more information on Aveda please visit www.avedaenergy.com.
This News Release contains certain forward-looking statements and forward-looking information (collectively referred to herein as "forward-looking statements") within the meaning of applicable Canadian securities laws. All statements other than statements of present or historical fact are forward-looking statements. Forward-looking statements are often, but not always, identified by the use of words such as "anticipate", "achieve", "could", "believe", "plan", "intend", "objective", "continuous", "ongoing", "estimate", "outlook", "expect", "may", "will", "project", "should" or similar words, including negatives thereof, suggesting future outcomes. In particular, this News Release contains forward-looking statements relating to: demand for the Company's services and general industry activity level; the Company's growth opportunities; and expectation to maintain revenue and equipment utilization. Aveda believes the expectations reflected in such forward-looking statements are reasonable as of the date hereof but no assurance can be given that these expectations will prove to be correct and such forward-looking statements should not be unduly relied upon.
Various material factors and assumptions are typically applied in drawing conclusions or making the forecasts or projections set out in forward-looking statements. Those material factors and assumptions are based on information currently available to Aveda, including information obtained from third party industry analysts and other third party sources. In some instances, material assumptions and material factors are presented elsewhere in this News Release in connection with the forward-looking statements. Readers are cautioned that the following list of material factors and assumptions is not exhaustive. Specific material factors and assumptions include, but are not limited to:
-- the performance of Aveda's businesses, including current business and economic trends; -- oil and natural gas commodity prices and production levels; -- the effect of the rebranding on Aveda's businesses; -- capital expenditure programs and other expenditures by Aveda and its customers: -- the ability of Aveda to retain and hire qualified personnel; -- the ability of Aveda to obtain parts, consumables, equipment, technology, and supplies in a timely manner to carry out its activities; -- the ability of Aveda to maintain good working relationships with key suppliers; -- the ability of Aveda to market its services successfully to existing and new customers; -- the ability of Aveda to obtain timely financing on acceptable terms; -- currency exchange and interest rates; -- risks associated with foreign operations; -- changes under governmental regulatory regimes and tax, environmental and other laws in Canada and the United States; and -- a stable competitive environment.
Forward-looking statements are not a guarantee of future performance and involve a number of risks and uncertainties, some of which are described herein. Such forward-looking statements necessarily involve known and unknown risks and uncertainties, which may cause Aveda's actual performance and financial results in future periods to differ materially from any projections of future performance or results expressed or implied by such forward-looking statements. These risks and uncertainties include, but are not limited to, the risks identified in Aveda's annual information form and management discussion and analysis for the year ended December 31, 2011 (the "MD&A"). Any forward-looking statements are made as of the date hereof and, except as required by law, Aveda assumes no obligation to publicly update or revise such statements to reflect new information, subsequent or otherwise.
This News Release contains the terms EBITDA and Adjusted EBITDA which are defined in the MD&A. EBITDA and Adjusted EBITDA as presented do not have any standardized meaning prescribed by international financial reporting standards (IFRS) and therefore may not be comparable with the calculation of similar measures for other entities. Management uses Adjusted EBITDA to analyze the operating performance of the business. Adjusted EBITDA as presented is not intended to represent cash provided by operating activities, net earnings or other measures of financial performance calculated in accordance with IFRS.
Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
Aveda Transportation and Energy Services Inc.
Bharat Mahajan, CA
Vice President, Finance and Chief Financial Officer
With the Apple Watch making its way onto wrists all over the world, it’s only a matter of time before it becomes a staple in the workplace. In fact, Forrester reported that 68 percent of technology and business decision-makers characterize wearables as a top priority for 2015. Recognizing their business value early on, FinancialForce.com was the first to bring ERP to wearables, helping streamline communication across front and back office functions. In his session at @ThingsExpo, Kevin Roberts...
Feb. 7, 2016 12:00 PM EST Reads: 330
SYS-CON Events announced today that Interoute, owner-operator of one of Europe's largest networks and a global cloud services platform, has been named “Bronze Sponsor” of SYS-CON's 18th Cloud Expo, which will take place on June 7-9, 2015 at the Javits Center in New York, New York. Interoute is the owner-operator of one of Europe's largest networks and a global cloud services platform which encompasses 12 data centers, 14 virtual data centers and 31 colocation centers, with connections to 195 ad...
Feb. 7, 2016 11:30 AM EST Reads: 332
With an estimated 50 billion devices connected to the Internet by 2020, several industries will begin to expand their capabilities for retaining end point data at the edge to better utilize the range of data types and sheer volume of M2M data generated by the Internet of Things. In his session at @ThingsExpo, Don DeLoach, CEO and President of Infobright, will discuss the infrastructures businesses will need to implement to handle this explosion of data by providing specific use cases for filte...
Feb. 7, 2016 10:15 AM EST
As enterprises work to take advantage of Big Data technologies, they frequently become distracted by product-level decisions. In most new Big Data builds this approach is completely counter-productive: it presupposes tools that may not be a fit for development teams, forces IT to take on the burden of evaluating and maintaining unfamiliar technology, and represents a major up-front expense. In his session at @BigDataExpo at @ThingsExpo, Andrew Warfield, CTO and Co-Founder of Coho Data, will dis...
Feb. 7, 2016 07:00 AM EST Reads: 105
SYS-CON Events announced today that Fusion, a leading provider of cloud services, will exhibit at SYS-CON's 18th International Cloud Expo®, which will take place on June 7-9, 2016, at the Javits Center in New York City, NY. Fusion, a leading provider of integrated cloud solutions to small, medium and large businesses, is the industry's single source for the cloud. Fusion's advanced, proprietary cloud service platform enables the integration of leading edge solutions in the cloud, including clou...
Feb. 6, 2016 03:30 PM EST Reads: 710
SYS-CON Events announced today that Commvault, a global leader in enterprise data protection and information management, has been named “Bronze Sponsor” of SYS-CON's 18th International Cloud Expo, which will take place on June 7–9, 2016, at the Javits Center in New York City, NY, and the 19th International Cloud Expo, which will take place on November 1–3, 2016, at the Santa Clara Convention Center in Santa Clara, CA. Commvault is a leading provider of data protection and information management...
Feb. 6, 2016 02:30 PM EST Reads: 356
SYS-CON Events announced today that Alert Logic, Inc., the leading provider of Security-as-a-Service solutions for the cloud, will exhibit at SYS-CON's 18th International Cloud Expo®, which will take place on June 7-9, 2016, at the Javits Center in New York City, NY. Alert Logic, Inc., provides Security-as-a-Service for on-premises, cloud, and hybrid infrastructures, delivering deep security insight and continuous protection for customers at a lower cost than traditional security solutions. Ful...
Feb. 6, 2016 01:30 PM EST Reads: 346
SYS-CON Events announced today that VAI, a leading ERP software provider, will exhibit at SYS-CON's 18th International Cloud Expo®, which will take place on June 7-9, 2016, at the Javits Center in New York City, NY. VAI (Vormittag Associates, Inc.) is a leading independent mid-market ERP software developer renowned for its flexible solutions and ability to automate critical business functions for the distribution, manufacturing, specialty retail and service sectors. An IBM Premier Business Part...
Feb. 6, 2016 01:00 PM EST Reads: 542
The cloud promises new levels of agility and cost-savings for Big Data, data warehousing and analytics. But it’s challenging to understand all the options – from IaaS and PaaS to newer services like HaaS (Hadoop as a Service) and BDaaS (Big Data as a Service). In her session at @BigDataExpo at @ThingsExpo, Hannah Smalltree, a director at Cazena, will provide an educational overview of emerging “as-a-service” options for Big Data in the cloud. This is critical background for IT and data profes...
Feb. 6, 2016 11:00 AM EST Reads: 127
Fortunately, meaningful and tangible business cases for IoT are plentiful in a broad array of industries and vertical markets. These range from simple warranty cost reduction for capital intensive assets, to minimizing downtime for vital business tools, to creating feedback loops improving product design, to improving and enhancing enterprise customer experiences. All of these business cases, which will be briefly explored in this session, hinge on cost effectively extracting relevant data from ...
Feb. 6, 2016 09:00 AM EST
Most people haven’t heard the word, “gamification,” even though they probably, and perhaps unwittingly, participate in it every day. Gamification is “the process of adding games or game-like elements to something (as a task) so as to encourage participation.” Further, gamification is about bringing game mechanics – rules, constructs, processes, and methods – into the real world in an effort to engage people. In his session at @ThingsExpo, Robert Endo, owner and engagement manager of Intrepid D...
Feb. 5, 2016 09:00 PM EST Reads: 776
Eighty percent of a data scientist’s time is spent gathering and cleaning up data, and 80% of all data is unstructured and almost never analyzed. Cognitive computing, in combination with Big Data, is changing the equation by creating data reservoirs and using natural language processing to enable analysis of unstructured data sources. This is impacting every aspect of the analytics profession from how data is mined (and by whom) to how it is delivered. This is not some futuristic vision: it's ha...
Feb. 2, 2016 02:00 PM EST Reads: 406
WebRTC has had a real tough three or four years, and so have those working with it. Only a few short years ago, the development world were excited about WebRTC and proclaiming how awesome it was. You might have played with the technology a couple of years ago, only to find the extra infrastructure requirements were painful to implement and poorly documented. This probably left a bitter taste in your mouth, especially when things went wrong.
Feb. 2, 2016 04:30 AM EST Reads: 841
Learn how IoT, cloud, social networks and last but not least, humans, can be integrated into a seamless integration of cooperative organisms both cybernetic and biological. This has been enabled by recent advances in IoT device capabilities, messaging frameworks, presence and collaboration services, where devices can share information and make independent and human assisted decisions based upon social status from other entities. In his session at @ThingsExpo, Michael Heydt, founder of Seamless...
Feb. 1, 2016 05:00 AM EST Reads: 924
The IoT's basic concept of collecting data from as many sources possible to drive better decision making, create process innovation and realize additional revenue has been in use at large enterprises with deep pockets for decades. So what has changed? In his session at @ThingsExpo, Prasanna Sivaramakrishnan, Solutions Architect at Red Hat, discussed the impact commodity hardware, ubiquitous connectivity, and innovations in open source software are having on the connected universe of people, thi...
Jan. 31, 2016 09:00 PM EST Reads: 718
WebRTC: together these advances have created a perfect storm of technologies that are disrupting and transforming classic communications models and ecosystems. In his session at WebRTC Summit, Cary Bran, VP of Innovation and New Ventures at Plantronics and PLT Labs, provided an overview of this technological shift, including associated business and consumer communications impacts, and opportunities it may enable, complement or entirely transform.
Jan. 31, 2016 07:15 PM EST Reads: 1,137
There are so many tools and techniques for data analytics that even for a data scientist the choices, possible systems, and even the types of data can be daunting. In his session at @ThingsExpo, Chris Harrold, Global CTO for Big Data Solutions for EMC Corporation, showed how to perform a simple, but meaningful analysis of social sentiment data using freely available tools that take only minutes to download and install. Participants received the download information, scripts, and complete end-t...
Jan. 31, 2016 10:00 AM EST Reads: 1,203
For manufacturers, the Internet of Things (IoT) represents a jumping-off point for innovation, jobs, and revenue creation. But to adequately seize the opportunity, manufacturers must design devices that are interconnected, can continually sense their environment and process huge amounts of data. As a first step, manufacturers must embrace a new product development ecosystem in order to support these products.
Jan. 31, 2016 10:00 AM EST Reads: 799
Manufacturing connected IoT versions of traditional products requires more than multiple deep technology skills. It also requires a shift in mindset, to realize that connected, sensor-enabled “things” act more like services than what we usually think of as products. In his session at @ThingsExpo, David Friedman, CEO and co-founder of Ayla Networks, discussed how when sensors start generating detailed real-world data about products and how they’re being used, smart manufacturers can use the dat...
Jan. 30, 2016 07:45 PM EST Reads: 776
When it comes to IoT in the enterprise, namely the commercial building and hospitality markets, a benefit not getting the attention it deserves is energy efficiency, and IoT’s direct impact on a cleaner, greener environment when installed in smart buildings. Until now clean technology was offered piecemeal and led with point solutions that require significant systems integration to orchestrate and deploy. There didn't exist a 'top down' approach that can manage and monitor the way a Smart Buildi...
Jan. 30, 2016 03:45 PM EST Reads: 1,260